Company capital structure weights on book value basis

Assignment Help Financial Management

Reference no: EM131588226

Dinklage Corp. has 5 million shares of common stock outstanding. The current share price is $77, and the book value per share is $8. The company also has two bond issues outstanding. The first bond issue has a face value of $60 million, a coupon of 6 percent, and sells for 97 percent of par. The second issue has a face value of $30 million, a coupon of 7 percent, and sells for 105 percent of par. The first issue matures in 21 years, the second in 4 years.

a. What are the company's capital structure weights on a book value basis? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.)

Equity/Value

Debt/Value

b. What are the company’s capital structure weights on a market value basis? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.)

Equity/Value

Debt/Value

Reference no: EM131588226

Questions Cloud

How doesit increase the npv of the mine to the operator : Here is a book balance sheet for Duane S. Burg Associates. Why is thisa valuable operating option? How doesit increase the NPV of the mine to the operator?

Discuss melissa forman - hilarious resume typos : Melissa Forman - Hilarious Resume Typos, demonstrates it is very important to avoid mistakes when writing resumes and cover letters.

Evaluate the effectiveness of the organization culture : Using the four functions of organizational culture, evaluate the effectiveness of the organization's culture.

Define the total mechanical energy : Consider the spring-mass analogue of the wave equation with X0 = XM = 0 as boundary conditions.

Company capital structure weights on book value basis : What are the company's capital structure weights on a book value basis? What are the company’s capital structure weights on a market value basis?

Describe one measurement dimension of the a priori model : Describe one measurement dimension of the "A Priori Model" using the dimension measurements in the "A Priori Model" diagram.

Employers adopt english-only policies : Even where it is legally permissible, should employers adopt English-only policies?

Construct a confidence interval : Do men also have a mean body mass index that is greater than the mean body mass index of women

What is the company strategy : What is the company's strategy? Is the strategy working? What are the company's distinctive competencies? weaknesses?

User Account

All Pages